Hightower v. Detroit Edison Co.

247 N.W. 97, 262 Mich. 1, 86 A.L.R. 509, 1933 Mich. LEXIS 827
CourtMichigan Supreme Court
DecidedMarch 1, 1933
DocketCalendar 36,915
StatusPublished
Cited by44 cases

This text of 247 N.W. 97 (Hightower v. Detroit Edison Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hightower v. Detroit Edison Co., 247 N.W. 97, 262 Mich. 1, 86 A.L.R. 509, 1933 Mich. LEXIS 827 (Mich. 1933).

Opinion

Fead, J.

May 5, 1932, plaintiff, seven years old, was injured by defendant’s truck. For- about four years she had been living with and was supported by her great-aunt, Mrs. Mable Powell. Mrs. Powell took her because her mother, who lived in Alabama, had not cared for her properly..

A few days after the injury Mrs. Powell was solicited by one Bailey, a representative of J. C. Donohue, who conducts business under the name of the Michigan Accident Claims Company, to place the accident claim with Donohue. He told her suit would be commenced. ‘ He also said Donohue was a lawyer. The next day she signed papers in Donohue’s office, but their contents are not disclosed. Donohue’s brother is associated with him, and it was also represented to Mrs. Powell that he had been admitted to practice.

June 2d, suit was commenced by summons, with Roscoe C. Griffith as attorney for plaintiff, and *4 Mrs. Powell as next friend. Declaration was filed June 14th, with notice that Griffith claimed lien for his services on settlement, recovery, or judgment. Mrs. Powell never talked with Griffith. The declaration was prepared by a stenographer in Donohue’s office, examined by Griffith, and then filed. It had no ad damnum clause, which indicates the character of Griffith’s employment and inspection. Griffith immediately executed blank substitution of attorney to be kept in Donohue’s files. It was executed in blank because Donohue had three or four attorneys who tried such cases for him, and he did not then know which would be chosen. Donohue, not the client, named the trial attorney. Griffith’s connection with the case ceased at this point. The procedure was routine, under which Griffith had handled a large number of cases for Donohue. Griffith did not try the cases he so commenced. In a few instances he presented a motion, sought appointment of guardian or administrator, or took consent judgment, but Donohue settled most of the cases himself, and Griffith merely took judgments for such amounts as Donohue told him. Griffith was paid each Saturday by Donohue for the work done during the week.

Appellant Tolonen, an attorney, tried many of Donohue’s cases, beginning late in 1930 or early in 1931. He claims he set his own fee, in all cases talked with the clients, and rejected some cases offered him because something put him on guard, but refused to give the-reason for the rejection, as privileged communication between attorney and client. He declined to say whether it was solicitation. He considered that both the party to the suit and Donohue were his clients. He relied on Donohue, at least morally, to see that his fee was paid. He had heard that Donohue had solicited personal injury claims, *5 and he once represented Donohue in an action involving an alleged solicited claim. He was usually employed through a telephone call from Donohue’s office. In case of settlement or payment of judgment to him, he would take out his fee, obtain receipt from the client in full, and lay the balance on the table in Donohue’s office in the presence of both Donohue and the client. He assumed that Donohue was collecting fees in the cases he tried.

July 20th, on telephone call from Donohue’s office, appellant was employed to procure the appointment of Mrs. Powell as plaintiff’s guardian. The appointment was made September 14th. Appellant had not then been employed to try plaintiff’s case. He was engaged a few days later by Donohue’s brother, who informed him that $400 had been offered in settlement. Appellant negotiated a settlement for $600. September 21st he saw Mrs. Powell, and she approved the settlement. She asked his fees, and he said the court would set them. The next day the case came on for trial. The purpose was to take consent judgment on the basis of the compromise. Plaintiff being an infant, the court had the duty to investigate the fairness of the settlement. Appellant was a little late at the trial, and before he arrived Mrs. Powell had told the court that the claim had been solicited.

When appellant appeared, he presented substitution of attorney, signed by Griffith, dated the preceding day, and still blank as to name of attorney to be substituted. He received it from Donohue. The court notified the Detroit Bar Association of Mrs. Powell’s claim of solicitation, and Mr. George Brand, its representative, appeared as amicus curice. The court entered consent judgment for plaintiff for $600. Mrs. Powell filed motion for substitution of *6 Charles J. DeLand as attorney for plaintiff in place of Roscoe C. Griffith, prayed that the court determine the amount due Griffith and appellant and the lien of either on the cause of action or judgment, and objected to allowance of lien or fees to either. October 3d, the court made an order substituting DeLand as attorney for plaintiff, subject to determination of appellant’s fees. Answers, supplemental motion, and affidavits were filed and testimony was taken. October 8th the court denied Griffith and appellant any fees or lien on the grounds that the claim had been solicited m violation of statute (Act No. 328, Pub. Acts 1931, § 410), and that Donohue was illegally practicing law through Griffith and appellant. The appeal is from disallowance of the fee.

Appellant has been so frank in his testimony and fair in his brief that we are prompted to give full credit to his claim of honest intent. He was not wholly Donohue’s servant, but maintained an attitude of ostensible independence and insisted upon personal contact with clients. It was not shown that he took any other solicited case. He knew, or had ample information to cause him to suspect, that Donohue solicited personal injury claims. But we think he might have refused a case if he actually had known Donohue had solicited the claim. Mrs. Powell did not inform him that the instant claim had been solicited, nor did he make inquiry of her. The issue is whether, although appellant felt he conducted himself with propriety, he mistook his duties as an attorney and may be denied a fee.

Was plaintiff’s claim for damages solicited by Donohue in violation of Act No. 328, Pub. Acts 1931, chap. 60, § 410:

“Any person, firm, copartnership, association, or corporation or any of the officers, agents, servants, *7 or employees of any such, person, firm, copartnership, association, or corporation, who shall directly or indirectly, individually or by agent, servant, or employee, solicit any person injured as the result of an accident, his administrator, executor, heirs, or assigns, for the purpose of representing such person in making claim for damages or prosecuting any action or causes of action arising out of any personal injury claim against any other person, firm or corporation, shall be guilty of a misdemeanor, and any contract entered into as a result of such solicitation shall be void: Provided, however, That nothing herein shall affect an unsolicited contract entered into by any person, firm or corporation with an attorney duly admitted to practice law in this State.”

The act is constitutional. Kelley v. Judge of Recorder’s Court, 239 Mich. 204 (53 A. L. R. 273).

Appellant, invoking the rule of strict construction of penal statutes, contends the act does not apply, because Mrs.

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Bluebook (online)
247 N.W. 97, 262 Mich. 1, 86 A.L.R. 509, 1933 Mich. LEXIS 827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hightower-v-detroit-edison-co-mich-1933.